How does an increase in minimum wage affect the productivity

How does an increase in minimum wage affect the productivity of employees? ?

Solution

Answer.) Studies by economists , including Nobel academicians found that employee morale and work ethic Increase when employees believe they are paid a fair wage. Economists have also linked higher wages to better physical and mental health and reduced \"decision fatigue\", leading to higher productivity.

A raise in the minimum wage predominantly benefits low-wage workers, precisely those most likely to put additional income directly back into the economy, kick starting a virtuous cycle of greater demand for goods and services, job growth, and increased productivity.